Currys owner plans fewer, larger stores

The owner of Currys and PC World today said it planned to reduce its number of UK shops to around 500 following the success of larger store formats. DSG International, which has 650 shops in the UK, said the majority of the estate will be out-of-town superstores which can accommodate its recently-introduced 2-in-1 Currys and PC World format.

The owner of Currys and PC World today said it planned to reduce its number of UK shops to around 500 following the success of larger store formats.

DSG International, which has 650 shops in the UK, said the majority of the estate will be out-of-town superstores which can accommodate its recently-introduced 2-in-1 Currys and PC World format.

It said those combined stores already open under DSG's transformation plan were proving popular after profit uplifts of up to 50 per cent.

The group, which is two-thirds of the way through a three-year revival plan, showed the benefits of the shake-up today as it reported a 61 per cent rise in underlying pre-tax profits to £90.5m for the year to May 1.

Like-for-like sales were up two per cent after rising six per cent in the second half of its financial year.

At the bottom-line, DSG returned to the black with profits of £112.7m, against losses of £123.6m a year earlier.

DSG's recovery comes as it faces up to increased competition following the arrival in the UK of American electronics firm Best Buy.

Former Tesco director John Browett took over as chief executive in late 2007 and has steered the business through a savage recession and put the firm's balance sheet in order with a cash-call on shareholders.

He said the business had made "excellent progress" over the last 12 months, despite recessionary pressure across Europe.

Mr Browett added: "We are now two years into the renewal and transformation plan and are encouraged by the improved profitability and competitiveness it continues to deliver."

The company has a total of 1,275 stores, including outlets in Norway, Italy and Greece.

Other changes have included the training of 20,000 Currys and PC World staff to provide better in store advice, more flexible home delivery times and faster turnaround at its television repair service.

In the UK and Ireland, total sales in the year were down five per cent to £4bn but the figure was up three per cent on a like-for-like basis in the second half after a strong Christmas trading performance and as the renewal plan delivered benefits.

Underlying profits in the UK division increased 21 per cent to £71.1m.

The company also said it planned to change its name to Dixons Retail plc.